Some of the banks are not cutting their prime rate by 50 basis points but are only cutting 25 points. The reason is that they are losing too much money and are expected to pass those costs onto their customers.

The banks are rebelling, but what will that do to the consummers. Shouldn't we be rebelling too!

I have a variable rate mortgage taken out with the risk that if interest rates go up, then i would pay more in interest, and if they go down then i expect that my interest payments would decline in like fashion.

Wouldn't this be like the bank breaking its agreement with me?

If I default, my house is gone, if they default, then its okay. Didn't a certain politician say that all the bank fundamentals are good in this country?

I am sure that will be the sentiment from most people and this does not boost confidence all that much.

What is the sense of the BoC cutting rates any further if the banks won't match the cuts?

AK